Nasdaq is reporting that Kinder Morgan stock dropped to C$15.75, while the Canada stock exchange benchmark was down 0.3 percent. Kinder Morgan was the top stock traded in Toronto, with 3.6 million shares changing hands within the first hour of opening.
The Financial Post is reporting this was the worst day for a Canadian Initial Public Offering (IPO) since Capital Power Corp. went public in 2009, The company was able to raise C$1.75 billion ($1.30 billion) in an initial public offering at C$17.00 per share last week.
As of 10:35 a.m. EDT, shares had recovered a little, to C$16.18 each, still 5.0 percent less than the initial offering. Kinder Morgan Canada had a market value of C$5.4 billion based on 345 million shares outstanding.
Houston, Texas-based Kinder Morgan had originally set a target price of $19 to $21 for the IPO, however, political turmoil in British Columbia has cast doubt on the Trans Mountain expansion. The company announced their IPO one day ahead of the BC election, which in retrospect was a bad move.
Christy Clark’s Liberal government has been in favor of the pipeline extension, but all that is now in question after the anti-pipeline Greens and NDP decided to join forces on Monday. The alliance will give them enough support to oust the ruling Liberal Party, according to CTV News.
Meanwhile, Justin Trudeau continues to support the pipeline expansion. “The decision we took on the Trans Mountain pipeline was based on facts and evidence,” Prime Minister Justin Trudeau said Tuesday in Rome. “Regardless of a change in government in British Columbia, or anywhere, the facts and evidence do not change.”
